liz: jpmori gain can't catch a break. the bank under investigation for allegingly trying to win business from chinese officials by hiring their children. charlie was ahead of the pact when announcing the troubles. wait until you hear what he says now. tesla thee most obvious screaming short for one single reason? the smart money thinks so, and it has nothing to do with the quality or musk's leadership, but it has to do with a single vehicle, not even on the road yet. a bull-bear debate on whether the next big electric thing could stall tesla's stock engine. can you hear me now? what happened when a hacker tries to warn facebook of a security flaw and gets no love? he hacks into the founder's account, of course, and

"countdown to the closing bell" starts right now. ♪ good afternoon, everybody, i'm liz claman, happy monday, last hour of trading. let's focus on u.s. treasury yields, marching upwards picking up where they left off friday. the ten-year at the high point, there it is, 2.89%. that is the highest level since july of 2011. now, the benchmark yield nearly doubled since may as investors grapple with when and how the feds' asset buying tapers the market. will businesses and stocks start to get hurt? keeping confidence in u.s. markets is the subject of president obama's meeting going on right now in washington on regulatory reform. the president urges top financial regulators to implement the dodd-frank reforms, and there's more than a thousand that have yet to be

enacted despite being passed in congress way back in 2010. we need to get to jpmar begin, in the cross hairs of the u.s. government, this time, nothing to do with the $6 billion london wale trading scandal or complex electricity contracts. look at the stock. it is one of the laggards of the dow jones industrials. now, according to the new york times, this time it's about the bank's practice of hiring the kids of powerful chinese officials. and they are upset what's happening there. how common a practice is this? jo spent five years in beijing covering the chinese government, business, and economy. first, the stock, letting people know it is down, about two and a third percent. let's get to the practice of hiring the children of powerful, political people. that's common place for a corporation.

sometimes there's business and political communities; right? >> yeah, that's right. it certainly comes anywhere, and anyone who knows anything about doing business in china, they are not surprised they hired children of the top ranking officials; right? the times report shows the state ownedded enterprises still wins the day in china despite proliferation of private companies, and jpmorgan may have relationships with the two most lucrative businesses, railroads and banking. the daughter of one of the most powerful within the ministry of railways, and not long after, his daughter was hired in 2010, they secured the ipo, the railroad group related, and after that an associate according to the times, won a bid to do an ipo for high speed railway from beijing to shanghai. the deal didn't go through because of a crash killing 40 people, but to get a sense how powerful railways are in china,

liz, they have their own police system, judges, nearly were as big as the entire u.s. government staff. it's been broken up, but, still, very big money. the second jpmorgan hiverring question, the father -- his father head of the ever jpmorgan bright group, huge banking conglomerate, and before that, china's top banking regulator, and after he was hired, jpmorgan got several coveletted assignments after he joined. the stock hit hard, trading down two and a quarter percent right now. it's the worst performer on the dow, and, liz, this is the take away i see. these are two part of the fcc's broader strategy now targeting hiring practices. they are stepping up attention in the foreign corrupt practices act, using that as a reason to go forward, and according to the times, the fcc investigating all

railway related hires over the last six years, and i think they probably will find, perhaps, more. liz: thank you very much. if you look on the screen, there's both green and red. the green, at least just with the russ -- no, that is negative. just a minutt ago, we were positive on the nasdaq. to the floor show, the cme, and okay, teddy, we are a few days away from so-called jackson hole where the fed's going to be talking about moving their mouths, ect., but until then, what will move this market? >> the bond market doesn't lie, and the bond market's probably telling us the truth, liz. you know, it's a mistake, just like the target didn't lie for a long time, i think the bond market says what happens with interest rate, and the fact that the stock market hangs in, i realize last week was a bad week, down a little today, but on a relative basis, still

acting better than we should be in light of the fact that interest rates look like they are clearly going higher. liz: as treasury yields claw to 3%, we are starting to see more of erosion this stocks, but nothing that's a spasm that's too disconcerning; right? is that still yet to come? what do the traders feel is about to happen? >> well, i like to put it in relative terms, 2.8% was the key midpoint in the 10-year note, it's above that for the first time. whether it closes above that, we have to wait and see, but 2.8% is the halfway point. put that in perspective. 2.8 the high, and 1.4 # was the low of the last four years, right now, just finally above the midpoint. it's not catastrophic. look where we were, you know, putting it in historical terms, if you can get a mortgage at 4.5%, you know, in the last 20 years, people would be very, very happy. it's up a personality, but off extreme lows. i'm looking at something that happened from a fundamental

stand point in the room. corn prices have a big bounce, a technical diversion so in seen in corn, but there's more corn than we can imagine. it's interesting to see if we are below $5 in december corn. liz: glad you brought up mortgages at 4%. i remember my sister in the 80s got 13% and thought she was in the money. >> exactly. liz: home builders, and i don't know if you can pop them up, but kb homes down 4 #%, hammered, and then oil situation. goldman sachs said we're going to have higher oil due to the headlines from egypt and the middle east. there you see the home builders, but what goes on now when we start to see at least some of, i guess the energy complex moves lower here. >> well, you know, any pullback, i think maybe they thought maybe there was more turmoil over the weekend with egypt. i think pullback's healthy. you know, when goldman sachs talks, they load up, and then

it's higher. the -- liz: didn't work this time. >> well, -- >> that's not fair. >> so just out of curiosity, you know, with the interest rates moving higher, world economyies could go lower, and, you know, financials could get lower affecting crude oil eventually, and i think we have trouble getting above $110, and you talked about open interest being record levels here, and when the guys bail out, watch out. could be at 102 quickly in the near future. liz: yeah, well, teddy, looking at the market indicators up here, nothing's truly jumping out other than the bond yields, which, of course, you said the bond market does not lie. if we continue to go higher, who gets hurt when the yields climb? is it the big dividend paying stocks people are so in love with? reits ar not such a great play. >> well, liz, fist of all, we are getting ahead of the curve because everybody's trying to

get ahead of the fed all the time, but the good news is as far as interest rates is concerned is that the economy, quite frankly, is doing nothing, and so there is not this underlying pressure, in my opinion, to really force interest rates higher. you know, this could be nothing more than the fed or ben bernanke trying to position the fed for his successor to get in place before he leaves so they don't blame the new guy, you know, if the new guy raises rates six months from now. i'm sure there's a lot of politics wrapped around this. i think a slight bump, you know, in interest rates, tapering, i'm not sure, near term it's the end of the world, but ultimately, if interest rates continue to climb, it's going to hurt the entire market. liz: yeah, gentlemen, thank you very much, and i'm glad -- >> thanks, liz. liz: thanks for touching on the home builders. let's dig deeply into them. it's a down day for the names because yields have risen, but the move is not just hitting stocks.

popular exchange traded funds got hit. lauren on the floor of the new york stock exchange. lauren? >> that's right, liz. raising rates, that is certainly the theme today, and we are seeing the entire sector hit because of it. if you take a look at the u.s. home construction etfs, the itb, it's officially in bear market territory, down 20% over the past three months, down more than 2.5% today including some huge names like lenar, toll brothers, cr horton, and another stock surprisingly sharply lower despite the upgrade is quality homes, where i am now, phm down 4%, 15 # 60 is the level, and the news today is that it got upgraded, and it's stiling down considerably. liz? liz: thank you very much. closing bell in 49 minutes, billionaire hedge fund manager, bill ackman allowed to get out of the jcpenney stock, but the

embattled retailer facing many challenges. guess what? the earnings report. i wouldn't call it "earnings," they are expected to make a lot coming out tomorrow morning, but today, just minutes from now, find out whether now is the time for you to buy or sell the stock. plus, is tesla the ultimate screaming short play now or screaming buy? the electric car maker appears unstoppable, but it's about to face powerful competition from a car that's not even on the road yet. we're gaming it out for you next. ♪ she loves a lot of the same things you do.

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liz: singing a happy tune in pandora, power mover of the however up 5%. pandora gaining and hitting an all-time high as needham and company raised the price target on the company to $25 from $20, maintaining the buy rating. the firm believes the company's core streaming business crosses break even and sees rapid margin caption in the business, and in addition cars pandora earns no

revenue, could be a sales breaker going forward. every carments pandora. watching closely. watching them, but how ugly and bloody will tomorrow be tomorrow for jcpenney, or will there be a saving grace as jcpenney reports quarterly numbers? dismal is the only way to describe the stock performance lately, which has taken a dive over the past three months, down more than 25%. chopped more than 30% this year alone, and the company has now gone four months without naming a ceo. this, after firing ron johnson in early april after all kinds of missteps. the slow search for a permanent successor, mike in for now, led to a very public fight with hedge fund billionaire bill acman who aused the board for not moving fast enough. they will release the latest earnings numbers, and what can we expect? with us, mary ross gilbert,

managing director, not in love with the stock. eight and under perform, mary. dare call it "earnings," reporting a loss, are they not? >> that's correct. actually, we're expecting them to report a loss of a negative 175 million. we're not focused on the earnings per share here because it's the more important met trick, and so like i said, that loss is 17 # 5, but as we know, they did burn 1.1 billion of cash in the quarter so the rest of that came from a working capital increase and capital expenditures. liz: well, they got the loan, and then, you know, infusion money, supposedly from george soros, but this company is burning cash to the point where there was apparently, untrue, but the rumor that cit, and it was in published reports, cit, the commercial lender, was halting lending for some of the shipments to jcpenney, frightening the market terribly

on the day a couple weeks ago on the day it came out; right? >> yes, it did, and i think part of it had to do with letters of credit that was actually posted with -- according to news reports that we read that was posted with cit, and, actually, we noticed that the company's letters of credit balance had increased significantly from about 150 million a year ago to about 469 million at the end of the first quarter. they could be putting these letters of credit out there to give assurance to the vendors, so for the moment, i think that stayed in place. liz: let's cut to the chase here, mary. are they paying their bills? >> yes, they are. we do keep in touch with vendors, and they are paying their bills on time. liz: okay. >> none of the vendors at this point in time are looking to buy insurance against their positions, but they are watching this situation closely. liz: okay. let's get to what they are doing

right. anything? i mean, they have the home stores, and people said that's an interesting prospect for them, but can they hang their entire wardrobe and not just hair hat on stores within stores? >> well, we think the idea is a good one, but it's going to take time to really gain traction. first of all, they have to bring the assortments back in balance meaning they have to bring back merchandise that resinated with the core older consumer. they also have to be promotional, and they are. they have increased promotions significantly. there's data out today talking about promotional activity at jcpenney as well as some other key retailers. liz: well, the toke is -- stock is down two and a third percent, 29% shorted, and the final question to you, mary, is, are we going to have this conversation a year from now, or will jcpenney be out of business? >> actually, we think jcpenney can turn around, but we don't think the turn around that we're

forecasting, and, look, we expect them to go from negative, you know, like i said in the quarter, 175 million and da is over negative 600 million. we think they can turn to a positive billion by 2015. like i said, at that point, it doesn't justify current share prices. there could be positive megaricks tomorrow, one is comp sales in august. there was reports there's positive trends. we expect comp sales up in the third quarter by 4.5%, and mainly because they are going against easier comparisons to last year when they were down 26%. >> yeah, comps make me nervous too anyway, but we'll watch and see what the sales numbers are. fresh, the soes, mary, thank u ve mh. >>than yu li ayross gilbert nd, of cour,arwth an under rfoadpie tagt f$8 of tetk.

closi benfur inutes. artmny hserin thesee a shot circui in tesa's ivrnp, othng do with htothrhrslers hae said. , h auation te uly, muskledsp? , n, ti to dowt tht it's about one vehicle on the screen that's not even hit the road yet. two analysts duke it out over whether tesla can handle its new competition. plus, jpmorgan's litigation mote. the company now forming thee most expensive and comprehensive litigation fire walls ever. what are they going to look like, and could this mean the firm will be stronger and better? exclusively, charlie has new details on this, stay tuned. ♪ ♪ my mantra?

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but the charges ever all kinds pile up against the company. what's the bank and the leader, jamie dimon plan to do for the future. fox business correspondent with details. >> suspect that how you get hire? hire sons and daughters of rich people? i don't know. you do that in the united states. sterns hired al's son for a bond deal from new york state. it's pretty -- this scandal kind of draws -- i roll my eyes, but here's what i know that dimon tells people in the bank he's spending billions to upgrade compliance and build what he termed a "regulatory mote" -- liz: what is that? >> a protection for the bank, set of systems that protect the bank from just about any sort of potential large scandal like the london wale and other things in the future. now, when will he finish it? who knows. a year progress, that's what they are talking about. they have to do it for the next year, and dimon expects, from

what we understand, the sources telling the fox business network, a year of regulatory headaches, you know, not just the london wale, settle that, may have to admit some sort of wrong doing in that thing, but many other things. liz: like ever trade has to be approved, things like that? like a regulatory -- >> now, there is some of that -- liz preforensic almost. >> you're right. there's some of that now, but the hoops to do a trade, to take a client order, to cash out a client order -- liz: any way? >> anything, instead of a one level of regulation, there's four levels of regulation. i hear this from people on the ground floor doing trades inside j pmorgan saying the systems will be ramped up. here's dimon's overall vision. i mean, he thinks they face the stuff for the next year, going to spend billions, but here's what he says. we got the money and the scale to spend it, and tell you, it's interesting thing. j pmorgan's in the light, in the spotlight now, but all the banks face the same regulatory, you know, scrutiny right now given dodd-frank; right?

jpmorgan has the money, the money to spend to create a regulatory system that is better -- that could be better than any other bank, and the other banks, the question s do they have the money? do they have the money? does it have the currency? citigroup have the money and currency to spend on this type of regulatory gofer haul -- overhaul to compete with jpmorgan? they are now donating -- now funneling, what i've been told from people inside the bank, billions to deal with this stuff, so in the future, we don't get as many all at once. liz: this reminds me of -- you remember jerome, the trading in the back rooms, and they didn't have the proper way to catch that stuff. some other banks really do. >> right. m fglobal didn't have anywhere nothing. i mean, this is one of the problems is going to be for, like, new entrance and smaller banks, i mean, do they have the money to comply with -- compete

with jpmorgan on a regular basis? they said, listen, we're in the spotlight now, but there's regulation coming affecting everybody, and one thing about jpmorgan, remember, made 20 billion last quarter. liz: they can do it. i have breaking news that could affection your sales, amazon's website is down, charlie, in the u.s. an canada. >> sales are lazy lately, and this is worse. >> "circle of friends," by charlie, and here's what we know, the website of amazon went down today for many users across the u.s. and canada. unclear what's triggered -- very rare disruption. >> maybe they got too many people using it at once. liz: today? i mean, black friday, maybe. >> maybe -- liz: there's error messages. >> turning the attention so much to the washington post, he's not paying attention to what makes it -- liz: we'll get a shot of the website. i can do that here. move the camera around.

>> currently on clear. liz: yes, on clear. take a shot of that. zoom in here. it says "oops" -- amazon, right here. there's a little monkey that says, "i'm sorry." >> they don't have my book up there? liz: that's all charlie cares about. >> see that story on cnbc this weekend? liz: which one? >> the story how they essentially promote -- they are pumping up stocks to get people on the aver. here's the thing. we all -- business journalism, we get people on there. that's not quite my job, i do some of it, you do it, and one thing we don't do here, i want the viewers to know this, we don't trade access for positive coverage. people have -- on this -- i will say this, pe herbal life story, bill, one of the people that seems to seemed to have been accused of putting scoops on, his handouts on first moving the stock and saying nice things about them.

there was -- there've been people that wanted to come to me with stuff saying we will only give this to you doing x, y, and z. i refuse to do that. i just won't. liz: works the other way. people whisper in the ear, and i was there at the time saying say something bad about overstock doicts, they sued, and got a settlement like you can't believe because the short sellers were battering. >> we all want tips and people to give leaks. liz: want to be first, sure. >> what we won't do, i won't do and you won't do, is go and say something nice to somebody about somebody as cnbc is accused of doing, saying something nice about the guest to get them to move the leak, move the stock, and, by the way,ings not put the leak into a proper context. they blew out a story about leon cooperman buying 30,000 shares of apple right after icahn came out -- liz: not that much. >> it was nothing.

liz: carl bought a billion worth. >> if it's a big deal, say it's not much, buy more in the future. liz: we have to go. charlie, the best investigative reporter around, don't care if people like him or hate him, gets the story. closing bell in 28 minutes. if a hacker gives you a warning, you want to lin. what happened to the facebook's ceo's account when a frustrated semigood samaritan decided to take action. is tesla's stock, doing unbleebly well, up 300% year over year moving too fast too furious? how one major problem could be ahead, new competition some call the tesla killer. ♪ [ male announcer ] these days, a small business can save by sharing.

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♪ liz: not just j.c. penney, but barnes and noble set to announce quarterly herrings. how is the stock doing? we head back over to lauren at the new york stock exchange for details. >> reporter: i'm not sure if this is any indication of what we will see tomorrow, but we like to call its books here. right now 80 look at the three months charter of becoming the stock is down 16%. anis come up tomorrow morning and we are expecting a loss of $0.89 per share. if you're keeping track, over the past four quarters barnes and noble has missed twice and beaten expectations twice. liz: amazon is back up, in case any of the traders wanted to know. back up and running. we just checked. they got upset when they heard us talking about it. they did not want it mad at them. there it is. live picture.

now to this story about facebook ceo and a palestinian computer researcher who simply said he wanted to help the social network plug a security hole. this story began when a researcher discovered a security bug that allowed apparently anyone to post content on a stranger's facebook what. what did this guy do? he had to facebook and posted a message on the wall of one of the friends of the ceo. the company blew it off, insisting that there was nobody talks. that is when the frustrated hacker ticket to the next level and had to the facebook wall of the ceo himself which get the attention of the social network. he was contacted within minutes and asked to explain what happened. normally facebook actually gives people of abortive at least $500 for exposing security flaws, but on this occasion the social network refused to make this hacker of payment and said it is because the researchers used to

the bug to post messages on facebook without the consent of users. what is the point of offering some the 500 insane, you don't get it because of this -- that is called fine print. 500 bucks. shares of investors darling test love more than three and a 50%, but they're is new kid on the block. one luxury carmaker charging its way into the electric car round. you ready for this? bmw unveiling its new all electric car model next year. in about a month it will reveal it, but it is nearly half of the price of the tesla sedan. could this possibly put some brakes on that test the bull run? our ratings trouble. joining me now, horrible, senior research analyst. and chief investment strategist. okay. this is what happened over the weekend. on talking to a bunch of people

who are the so-called smart money. sure enough they say for no other reason than bmw entry into the electric car market may very well be a screaming short. you do not like tesla as a stock right now? >> absolutely. we love the test car. one of my neighbors has won. that does not mean it makes a good investment. the fact of the matter is next year they will make 40,000 cars. they have an 18 billion market cap. meanwhile, gm with three times a market cap will make 3 million cars. basically you are paying 30 times more the of the market cap and if you got the gm. all great things have a certain price. we have seen this before with facebook, groupon, yahoo. there comes a point when it does not make sense, and this may be the catalyst to break this stocks rise. liz: general motors as an

example, but they have the ball that is not selling as such an exciting club. you bring bmw into the makes an offer car and $40,000. the identity expected to come out next year. we can show pictures of its people and see what it is. a totally different looking car. but they have the ability to scale up and about two seconds flat. you still love tesla. >> a couple of fundamental points. tesla as disruptive technology. this is a fundamentally different drivetrain. you're talking about twice the range, if not more. liz: wait a minute. up to 90 miles for the bmw. if the fed therefore did you give more. >> and if you drive in the city you get 400 miles. they don't talk about it tremendously. 300 miles on the freeway. so you're talking about a fundamentally different performance experience.

the sedan is a much bigger car with more trucks space and more space for the passengers. we will see how the bmw drives. the tesla drives incredibly well and that has all the details on properly. liz: upon your screen the comparison. the sedan and around 60, 70,000 persons the 41,000 starting price. look, as we look at all of these specs, ramping up themselves. but a new piece of property next to the fremont plan. indelicate that and say, don't count this guy out. he makes rocket ships egregious six years ago i was in the plan and it looks like something made together with tinfoil. >> it definitely has the cool factor. but at the end of the day, making is a very capital-intensive business. guinea to line up the infrastructure. one of his biggest challenges is to get the parts and so forth. of course, he needs to ramp up internationally.

bmw already has the relationships with the parts makers and so forth. they have a global distribution network. they can do it for half-price. you want basically the same thing but pay twice as much, fine. i don't think that makes sense as a car buyer. i know paying far more than that in the stock market is not the way. liz: what if this comes out and sure enough, they're supposed to do 21,000 sales of the sedan this year. they're looking like they're going to hit that, which is unbelievable. congratulations. what if in the first couple of months bmw sells 22,000 of this to all of the faithful say it could be a third car? and that kill the stock of tesla >> and tesla is running well ahead of the production numbers. we think they're making it. well no. the 25,000 per year in terms of a correction that they can hit. numbers will continue to go up

over the next 12 to 18 months has folks catch up with the execution on the story. the other thing is really about the actual cost of the car. tesla started a brand the company, bought a factory that can scale up to 500,000 cars versus almost 3 billion. liz: if you had all the money in the world and a choice to dubai the bmw or the tesla? >> you know, i actually would because i like to travel in ski country, like you. there's a problem, i know i can give my bmw fixed. i'm not sure about the test and when. liz: will leave it at that. many is short has been burned and crushed by tesla, 381% this year, just about a 30% short. we want to think both colin and david. great to have you both. thank you. >> thank you. liz: good to see you. closing bell ringing in 15 minutes. forget about leaving on a jet plane, you might find this very

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♪ liz: we have breaking news right now. he is a new york based hedge fund manager. you may know the name. his advisory firm has now agreed to a settlement. he must pay more than $80 million admit wrongdoing and be barred from a securities

industry for at least five years. a hundred million dollars from his fund to pay a personal tax bill. that is a big no-no. as we look at all that we're simply saying, he has apparently according to the securities and exchange commission admitted wrongdoing and will pay more than $18 million the far from the securities industry for at least five years. once again, hundred 13 million from one of his funds so that is investor money. no. not acceptable. let's talk about some sweep returns here. the multi can't find ticker symbol hdpx outperforming the s&p year-over-year. the billion dollar fund manager says he is obsessed with the u.s. right now. let's break down the fundamentals with don hodges, not just capitol management founder, chairman and portfolio manager. great to see you. great numbers, and it is impressive because you are outperforming the s&p.

you are a multi cap fund. explain to our viewers what that means. >> we buy anything that looks as if it is something that could go up over the next 18 months. it could be of value stock, growth stock, small cap, micro cap. we are just searching the universe. we don't pay a lot of attention. we look at companies. and there it -- regardless of the market we aren't we always find some good investments. liz: we love good investments. right now i find it interesting because the last time you or your back in june you like some of the airlines. delta and southwest. one is up and one is down. why the airlines and everyone says it is just such a push me pull you type of business. one minute is looking good in the neck something goes wrong.

>> and that is true. looking back over 25 years is probably one of the worst groups that you could invest in. but having said that, that is probably the reason it is a group now because the airline industry is having an example of what not to do and they are beginning to do things that makes sense and that make money. it is not nearly as competitive as it was at one time. i think management is better than they have been in the past. and it is one of the great industries in america. we think that going forward there will continue to make money and continue to surprise investors liz: we want you to surprise us with some names. before we get to that, you are saying the you are obsessed with the united states. how are you specifically looking for a stock? what are some of the rules you adhere to? >> well, we research virtually everything that comes to our attention that sounds as if it is something that we should

research. our analysts, we have five bright young fellows that to research for us. effective last june and may 2100 company contacts. that is about 750 different companies. so we are just searching all the time. the whole universe is at our disposal. like i say, we are not concerned about what is going on in europe or what interest rates happen to be. if any of the noise that occurs in the market, we look at companies. we find a company that we think is a good investment we stick our necks out and make it. liz: we have your top holdings appear, but now we're going to reveal your favorite names. to energy names. the ticker symbol line. then you have when coke. both with beautiful dividends. very, very nice return. then we've slipover to free. >> reporter: marin. it is down 10%.

and finally, natural resources is one that you loved. i want to focus on encore wire, up 31 percent over the past year. this is a copper cable company for the building industry which must mean that you believe in big economies coming back. >> every one of those stocks are things that we think had two years from now could be an entirely different story than what it yesterday. in the case of freeport and cliff resources, both of those stocks are substantially off supplies. but they both have a lot of leverage and a lot of learning power. we think that it will be too long intel that will be recognized in the market. you know, maybe they can be the kind of thing that goes up 50% from the levels at which their trading right now. liz: we will put all of your stock picks up on facebook / liz claman be wonderful to see you. once again, we give you a hand. you are doing well, beating the market.

it's one thing to match. you are beating it. congratulations. thank you. >> thank you, and thank you for sharing this time with us. liz: tell the gain in dallas we said hello. closing bell ringing in about five minutes. some of the country's biggest retail is getting set to report ahead of the bell. we will show you how the stock stacked up this quarter next. [ male announcer ] how do you get your boue?

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split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ liz: best buy sticks out like a sore thumb here. these are names reporting before the bell. what you see is home depot down, but look at jcpenney. it has been a tough quarter for them. barnes & noble and tj maxx, best buy the one bright spot here. here is ashley webster for david asman. >> i went to best buy yesterday. liz: how was it? >> normally not so great. i needed three things. went in there, boom, boom, boom,

out. it was a good experience. liz: let's let's go to lauren simonetti always giving a good experience at the new york stock exchange. intel biggest gainer on the dow. >> a big winner on the s&p 500. >> piper jaffray said the pc is not dead especially the spring of next year. >> lauren, airline stocks also continuing to suffer. big names falling into the red today. >> yeah. this is the surprising because over the weekend "barron's" said this selling should be overdone at this point. turns out that is not the case liz: ashley, look at some of these oil stocks. apache is a mess.

>> that is one of the reasons the stock is down more than -- [closing bell ringing] liz: on this monday. the bells are ringing on wall street. yeah, couldn't quite make it earlier today. nasdaq saw some green, you see a little bit bit of a reversal, te dow jones industrials down full 71 points, close to the lows of the session. the s&p 500 is down. russell 2,000 down a full percentage point. ashley: let's get to some top headlines for you. the fed is telling big banks to improve how much capital they need to with stand any future crises. citing tests that were used to determine a bank's health. liz: jpmorgan's stock taking a hit on new concerns about scrutiny from regulators. they could face 6.8 billion in legal losses above existing reserves. charlie gasparino is reporting they're creating a moat. ashley: is that right? billionair